Project Cost Estimating

Contents

Part 1. Estimating for construction projects 1

1 Purposes and stages of estimating

Nigel Smith

Estimating at project stages; types of estimating technique; estimate summaries; bibliography 3

2 Initial estimates

Paul Jobling

Importance of early estimates; risk in initial estimates; initial estimates for different contract strategies; estimating techniques for initial estimates; suitability of estimating techniques for project stages; practical aspects of initial estimating; lessons of previous projects; bibliography 11

3 Estimating at the design stage

Alan Tyler and Nigel Smith

Feasibility estimating; proposal estimating;

bibliography 28

4 Estimating for construction

Ronald McCaffer and Andrew Baldwin Competitive environment; importance of estimating; tendering process; decision to tender; planning the production of the estimate; project study; preparing the base cost estimate; unit rate estimating; example of unit rate estimating calculation; operational esti-mating; example of operational estimating calcula¬tion; spot rates; calculation of site overheads or on-costs; example of calculation of site overhead costs; bibliography 34

5 Detail estimating of process plant costs

Richard Fox and Gareth Williams Estimating function; objectives of the parties; technical estimates; commercial estimates; allowances and contingency; qualified and alternative bids; award; partnership estimating; summary; bibliography 51

6 Tender adjudication

Ronald McCaffer and Andrew Baldwin Finalization of the bidder’s tender; preparing reports for the bidder’s tender adjudication; the adjudication process; writing up the bill of quantities; the client’s evaluation of the tender; bibliography 60

7 Case study: Cheddleton sewage treatment works

Paul Medley

Feasibility study; feasibility estimates; conceptual design and costing; detailed design and costing; tender and construction stage; final costs; discussion; findings 69

Part 2. Estimating practice 79

8 Information technology in estimating

Denise Bower

Computer-aided estimating; estimating data; advantages and disadvantages of computer utilization; client’s estimate; contractor’s estimate; integration of time and cost; cost-significant work packages; parametric estimating; knowledge-based approach to estimating; bibliography 81

9 Human factors in estimating

Martin Skitmore and David Lowe Factors affecting accuracy; role of the estimator; skills of the estimator; characteristics of the estimator; inter-pretation of data; influence of experience; bibliography 91

10 Conclusion

Nigel Smith 101

Biographies of the authors 105